According to BlockBeats news on August 4, as reported by The Block, Vincent Liu, Chief Investment Officer of Kronos Research, stated that the current market is showing a 'cautiously optimistic' sentiment amid macroeconomic uncertainty and institutional buying. The fear and greed index tends towards 'greed', and whale purchases along with interest rate cut expectations are driving traders to reallocate risk assets.
Investors are focused on the US July CPI data, which will be released on August 12, as a key indicator for the next round of interest rate hike or cut decisions. Although the Federal Reserve kept interest rates unchanged at the July FOMC meeting, Powell stated that the decision for a rate cut in September still depends on economic data. However, CME FedWatch data shows that the market expects over an 80% probability of a 0.25 percentage point reduction.
In addition, Liu believes that the 'Project Crypto' initiated by the US SEC may benefit the market in the medium to long term. The project will reduce regulatory uncertainty, promote DeFi growth, and enhance market confidence by clarifying token classification and introducing a DeFi innovation exemption mechanism.